Micron Know-how (MU) shares moved larger in prolonged buying and selling Thursday after the chipmaker posted better-than-expected results and issued a powerful outlook, bolstered by surging demand for AI.

The reminiscence chip maker and Nvidia (NVDA) associate noticed its knowledge heart income triple within the fiscal second quarter from a yr earlier amid sturdy demand for its high-bandwidth reminiscence chips utilized in methods that develop and run AI software program.

Micron shares have gained 22% because the begin of the yr as of Thursday’s shut, although commerce simply 7% larger over the previous 12 months as surging demand for the corporate’s AI choices has been partially offset by modest demand for its chips utilized in smartphone and PCs. The inventory rose 1% to $104 in after-hours buying and selling Thursday.

Beneath, we break down the technicals on Micron’s weekly chart and level out key value ranges price watching out for.

Potential Symmetrical Triangle Breakout

Micron shares have traded inside a symmetrical triangle since September final yr, doubtlessly forming a continuation pattern forward of one other transfer larger.

Extra lately, the inventory discovered shopping for curiosity close to the triangle’s decrease trendline and will get away above the sample in Friday’s buying and selling session after the corporate’s upbeat outcomes.

Let’s apply technical analysis to Micron’s chart to establish three key overhead areas that traders will doubtless be watching and in addition find a vital support level price monitoring throughout pullbacks within the chipmaker’s inventory.

Key Overhead Areas to Watch

Earnings-driven shopping for above the symmetrical triangle may see the shares initially make a transfer as much as the $107 stage. This space supplies overhead resistance close to the 50-week shifting common and a horizontal line that connects a collection of value factors on the chart stretching again to April 2024.

A transfer above this space may spark a rally to round $130. Traders who’ve accumulated shares at decrease ranges might search for exit points on this area close to final yr’s April peak, which additionally carefully aligns with a variety of closing costs positioned just under the inventory’s all-time high (ATH) set in June final yr.

To forecast a possible upside goal above the ATH, traders can use bars sample evaluation. To use this system, we take the value bars that make up the inventory’s uptrend from October 2023 to June final yr and overlay them from this month’s low. The evaluation initiatives a goal of round $200, practically double Micron’s Thursday closing value.

We chosen this prior development because it adopted an earlier symmetrical triangle on the chart, offering perception as to how a future transfer larger within the inventory might play out..

Essential Assist Stage to Monitor

Throughout pullbacks in Micron shares, traders ought to maintain tabs on the $85 stage. The inventory would doubtless discover help on this space close to a variety of lows extending again to August final yr and a consolidation interval that shaped on the chart in December 2023 and January 2024.

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As of the date this text was written, the writer doesn’t personal any of the above securities.